He Qiao Building Lease Agreement between Beijing Heqiao Property Administration Company and Mtone Wireless Communication (Shanghai) Co., Ltd Beijing Branch
This lease agreement, effective January 1, 2004, is between Beijing Heqiao Property Administration Company (landlord) and Mtone Wireless Communication (Shanghai) Co., Ltd Beijing Branch (tenant) for office space in He Qiao Building, Beijing. The lease covers 274.97 m² for two years, with an option to extend for one year. The tenant pays $3,574.61 monthly rent plus fees and a security deposit. The landlord maintains the property and provides services. The tenant must use the space for office purposes and follow building rules. Disputes are resolved by the Beijing Arbitration Committee.
EXHIBIT 10.27
Summary of He Qiao Building Lease Agreement, Effective November 28, 2003, Between Beijing Heqiao Property Administration Company and Mtone Wireless Communication (Shanghai) Co., Ltd Beijing Branch
Lessor (Party A): Beijing Heqiao Property Administration Company
Lessee (party B): Mtone Wireless Communication (Shanghai) Co., Ltd Beijing Branch
Date of Signing
November 28, 2003
Property Description
Location: Room 506-507, Floor 5, He Qiao Building A, Guang Hua Lu Jia No. 8
Square footage: 274.97 m2 in architectural area
Type: office space
Term of Lease
Effective Period: from January 1, 2004 to December 31, 2005 (2 years)
Extension: Party A and Party B may reach the extension of the agreement for one year only at 3 months before the expiration.
Rental Use
Office use
Rent Amount
US $ 3,574.61 per month in total.
Major Obligations of Either Party
Party A shall:
| 1. | maintain the current furnishings of the leased rooms from the first renting day |
| 2. | be liable to provide central air-conditioning during the normal office time; |
| 3. | be liable for keeping the facilities in good and appropriate condition; |
| 4. | be liable for the sanitation of public areas; |
| 5. | notify Party B in writing at least one month in advance before modifying or terminating the administration regulations, outfitting regulations and other necessary regulations |
Party B shall:
| 1. | be liable for the payment of relevant fees and deposit under the terms and conditions of this contract; |
| 2. | keep the leased rooms in good condition except for normal depreciation, wear and tear; |
| 3. | use the tenement only for office use; |
| 4. | observe Lessee Handbook, Outfitting Handbook and the Lessee Handbook Implementing Rules and Outfitting Handbook Implementing Rules given by Party A |
Termination Events
Party A may terminate the contract, keeping the deposit, provided any of the following events occur caused by Party B:
| (1) | Operating illegal business which against PRC laws and regulations; |
| (2) | Changing the leasehold’s usage without the approval of Party A, |
| (3) | Dose not operate the leasehold under the name of or on behalf of Party B (except Party B’s subsidiaries) without Party A’s approval, |
| (4) | Conveying or subleasing the leasehold totally or partially to any third party or using the leasehold with any third party (except Party B’s subsidiaries) without Party A’s approval |
Security deposit and other refundable or non-refundable payment
| 1. | Deposit: US$ 13,611 (consisting of 3 months’ rent plus 3 months’ management fee) |
| 2. | Management fees: US$ 3.5 per square meter per month |
| 3. | Electricity fees: RMB 1 Yuan per kwh |
| 4. | Telephone fees: RMB 6000 Yuan per line, and its service fees is RMB 120 Yuan per line |
| 5. | Other fees for energy and car park (if applicable) |
Dispute Resolution
The parties have agreed to present all their disputes to Beijing Arbitration Committee.
